Page 113 - RusRPTMay20

Bad debts could put pressure on Russian utilities profits. ​ News: Russian generating companies have written to the Minister of Energy, Alexander Novak, asking for support as concerns the situation with non-payments during the pandemic. According to the gencos, the companies are providing an uninterrupted supply of energy and employing a large number of people and so can be called systemically important enterprises. At the same time, along with the measures (such as the abolishment of fines for non-payment, etc) that are currently being discussed, the companies expect an increase in non-payments, which could put pressure on them.
Prime Minister Mikhail Mishustin has approved a ban on the imposition of penalties for non-payment of communal services, ​including electricity, gas, water, sewage and heat. According to the prime minister, the measure applies irrespective of household income, and prohibits services from being cut off for non-payment. The measures have only been introduced for households, and not for industrial consumers.
Electricity demand under pressure in Russia due to pandemic. ​On 2 April, Interfax reported (citing the Ministry of Energy) that in the first days of the week with the quarantine regime in Russia, electricity demand decreased 5-10% YoY. As of 30 March, capacity consumption had decreased 10GW, to 8% below the regular levels. In particular, regions with large industrial consumers did not face any major reduction in demand, while in those with no such consumers the drop in demand was driven by the fall in demand from shopping centres, cafes, offices and hotels.
9.1.11 ​Metallurgy & mining sector news
Russia will start to grant gold miners perpetual licenses to export gold.
The decree, announced yesterday, aims to give perpetual license rather than one-off rights in a bit to support gold miners ship metal overseas independently, according to Reuters. An immediate jump in gold exports by gold miners is unlikely as it will take several months to tune up the process, according to the head of Russia’s Gold Industrialists Union Sergei Kashuba.
International rating agency Moody’s has worsened its outlook for Russia’s steel sector to negative from stable​, the agency said on April 6. Moody’s expects that demand for steel will fall by 3–7% this year compared with a previous projection of 1–2%.
Moscow retail HRC prices fell 2.3% w/w to $481/t in the middle of April​. Trading companies are trying to stimulate demand and maintain turnover by sacrificing profitability. Prices offered are significantly below plant prices. Relative to last week, consumer activity has not changed significantly – according to estimates of a number of traders, sales volumes are 40-50% lower than normal for April. Consequently, most traders expect concessions
113​ RUSSIA Country Report​ May 2020 ​ ​www.intellinews.com